Active Taxpayers List – Who is a Filer?

Under Section 2(23A) of the Income Tax Ordinance, 2001, Filer means a person whose name appears in the Active Taxpayers List (ATL), maintained under powers derived from Section 181A of the Income Tax Ordinance, 2001

A person’s name is included in ATL if the person has filed return u/s 114 or a statement u/s 115.

In case of a company or and AOP where incorporation or formation date is after 30th June relevant to the tax year and hence return is not yet due to be filed, the name of the company or AOP shall be included in ATL

An ATL published in a financial year is valid from the date of publishing to the last day of February next. This means that ATL will remain based on the returns for Tax Year 2016 up to 28.02.2018

ATL is updated once a week, every Sunday at 2400 hrs

PROCESS

To be included in ATL and be a filer, a person has to file return u/s 114 or statement u/s 115 (e.g. before 28.02.2018, return / statement for Tax Year 2016 and from 01.03.2018 onward, return / statement for Tax Year 2017 needs to be filed).

(Reply to The First Question)The persons required to file return.114. Return of income. — (1) Subject to this Ordinance, the following persons are required to furnish a return of income for a tax year, namely:–[(a) every company;]
[(ab) every person (other than a company) whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year; [or]]
[(ac) any non-profit organization as defined in clause (36) of section 2;
[(ad) any welfare institution approved under clause (58) of Part I of the Second Schedule;]
[(b) any person not covered by clause 8[(a), (ab), (ac) or (ad)]
who,—
(i) has been charged to tax in respect of any of the two preceding tax years;
(ii) claims a loss carried forward under this Ordinance for a tax year;
(iii) owns immovable property with a land area of two hundred and fifty square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory
[(iv) owns immoveable property with a land area of five hundred square yards or more located in a rating area;]
[(v) owns a flat having covered area of two thousand square feet or more located in a rating area;]
[(vi) owns a motor vehicle having engine capacity above 1000 CC; 5
[(vii) has obtained National Tax Number [; or] ]
[(viii) is the holder of commercial or industrial connection of connection of electricity where the amount of annual bill exceeds rupees 9 [five hundred thousand]10[; or] ]
[(ix) is 12[a resident person] registered with any chamber of commerce and industry or any trade or business association or any market committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan.]

[(1A) Every individual whose income under the head ‘Income from business’ exceeds rupees three hundred thousand but does not exceed rupees [four hundred thousand] in a tax year is also required to furnish return of income
income from the tax year.]

(Reply to the Second Question)A taxpayer who files return for the year, on which Active TaxPayer List (ATL) is based, becomes filer regardless of his declared income threshold.

Since my annual income is less than 12 Lakh so I’m not required to file income tax return as per 114(ab). However, the irony is that I’ll be treated as non-filer and hence would be charged double tax than a filer, where applicable.

So, practically I’m left with the only option of filing tax return which I’m not supposed to file. Is there some solution to this issue? For example, a certificate by tax authorities showing that I’m exempt from tax and must be treated as filer rather than non-filer, where applicable?